WASHINGTON, DC-Fannie Mae just priced its sixth Multifamily DUS REMIC for $1.02 billion. In many ways, the transaction, done under the GSE's Guaranteed Multifamily Structures program, was business as usual, says Josh Seiff, Fannie Mae Director of Multifamily Capital Markets. "Investor demand was strong," he tells GlobeSt.com, adding "that there were a couple of new investors on this deal."
That said, the volatility in the rate environment clearly had an impact on investors, Seiff tells GlobeSt.com. "Around time we were pricing deal, ten-year Treasuries were bouncing around," he says. "That made it challenging for institutional investors to decide whether to put their money to work."
Not that this hesitancy has been limited to the agency deals. In general, investors are looking for more clues from the Fed about pace of tapering, which is affecting demand for all kinds of fixed income products, Seiff says.
"Fannie Mae did not escape the uncertain rate economic and the heavy supply of CRE structured products made new issuance a challenge as well."
Ultimately investors still willing to put money to work at the right levels, he said, meaning that spreads widened out for this issue but not by a significant degree.
This issue will settle on June 28, 2013. Barclays is the manager and Deutsche Bank and Jefferies are the co-managers.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
